You don’t know when and how to register for VAT in Ireland with the taxman. This article will guide you how to register for VAT in Ireland.

What is VAT? VAT stands for Value Added Tax which is added up to the price of your products and services. The VAT registration is not compulsory for new businesses unless your sales and turnover has reached to a certain theshold. At the time of writing this article, VAT registration is mandatory if the general turnover threshold of supplying goods or products over 75,000 Euro or 37,500 Euro for providing services within any continuous 12 month period. The Irish Revenue also requies you to register for VAT if you earns 41,000 Euro for making acquisitions from other EU Member States.

New businesses are not obliged to register for VAT if turnover is below the VAT thresholds. However, you can elect to register for VAT voluntarily with the Revenue. You then reclaim on your start-up costs because you have to file your VAT returns to the Revenue regularly. After all, that result in being costly and having more paperwork for your business. Your new business can also add VAT on top of your products and services so you can determine your selling prices at the beginning.

How to Register for VAT?

In order to have a VAT registration number, you need to submit an application form to the Revenue. If your application is successful, Revenue will provide you with a VAT number begining with IE. You can provide the number to your customers and business partners, the number appears in your invoice. The Revenue would reject your application if you are not hiring any employees or you have no customers in Ireland. The Revenue may also ask you to submit further evidence.

There are four VAT rates: standard, reduced, second reduced and livestock rate in Ireland. VAT rates refers to the percentage of VAT you add it up in your invoices. When your business register for VAT in Ireland, you have to file VAT returns to the Revenue. It depends on the given time taxable period (interval) by the Revenue, you must file your returns in time or under-declare your VAT. You will receive fines and penalties from the Revenue.

VAT application process is not easy. Please refer to our VAT services so that we can advice you on the Irish VAT registration procedures. We also provide accountancy services for new Limited Companies. Please speak to our team at 0035319609648 or email at [email protected] if you have any questions about setting up a new business, registering for VAT and tax in Ireland.